Shire to acquire Dyax for $5.9bn

Dyax develops plasma kallikrein (pKal) inhibitors for the treatment of hereditary angioedema (HAE), a rare and potentially life-threatening disease that causes swelling.

The deal gives Shire access to Dyax’s lead pipeline product, DX-2930, a fully humanized monoclonal antibody targeting plasma kallikrein (pKal) inhibitors to treat HAE.

DX-2930 recently completed early-stage clinical trials, which showed it reduced attacks by over 90% in patients who had suffered from two or more flare-ups in the previous three months.

It is expected to be launched in 2018 and bring in about $2bn in peak annual sales.

Under the deal, Shire will pay $37.30 for each Dyax share. Dyax investors may also get an additional $4.00 per share in cash via a non-tradable contingent value right (CVR) for the regulatory approval of Phase 3-stage DX-2930.

The transaction is anticipated to close in the first half of next year. Shire expects the deal to generate about $50m in savings in 2017 and $100m in 2019.

Shire will fund the acquisition using a $5.6bn term loan and its $2.1bn revolving credit facility.

Shire CEO Flemming Ornskov said: "DX-2930 is a strategic fit within our HAE domain expertise, and we are well-positioned to advance the development, registration, and commercialization of DX-2930 for the benefit of HAE patients.

"This transaction also offers other potential upside opportunities, including Dyax’s early-stage pipeline."

Dyax president and CEO Gustav Christensen said: "We believe this transaction will deliver substantial value to our shareholders and highlights our shared commitment to bringing innovative medicines to patients who suffer from the devastating effects of HAE."